Do you like streaming TV and movies from Netflix or Hulu? Or direct downloading games and software upgrades? Do you find cloud storage useful? Too bad- lobbyist Michael Powell from the National Cable and Telecommunications Association is ready to make all that very expensive for you by enforcing data caps.
This week, Powell, a former chairman of the Federal Communications Commission, stated that he believed cable internet providers “should be moving with some urgency and purpose” towards introducing data caps. Essentially, this would allow cable internet providers to begin charging users for any data usage after they have surpassed a certain limit. The move could be very expensive for frequent internet users but extremely lucrative for the service providers imposing the data cap.
The argument in favor of data caps is based around protecting light internet users from paying the same amount for their cable connections as high-speed frequent users. According to lobbyists, the data caps would protect these minimal users from a flat fee which is raised to accommodate high usage by others.
Currently, internet providers Time Warner Cable and Comcast are preparing to introduce plans which only offer a $5 discount from their flat rates for users who accept at 5GB data cap, with an additional charge of $1 per GB over the initial plan.